Prepare a balance sheet using the information given below. Make ...

[jerry coleman]

Prepare a balance sheet using the information given below. Make sure to identify current assets, net fixed assets,
  total assets, current liabilities, long-term debt, total equity, and total liabilities and equity.
 
  Gross fixed assets 40,000
  Cash 18,000
  Other assets 5,000
  Accumulated depreciation 30,000
  Common stock 43,000
  Short-term notes payable 12,000
  Accounts payable 35,000
  Inventories 122,000
  Retained earnings 100,000
  Accounts receivable 60,000
  Long-term notes payable 10,000
  Long-term bonds payable 15,000
  Sales 300,000
  Cost of goods sold 150,000
  Depreciation expense 3,000

Question 2

Which of the following would be most likely to align the interests of managers and shareholders?
 
  A) Fixed but high salaries
  B) Large bonuses
  C) Stock options
  D) None of the above

[vseab]

Answer to Question 1

Cash 18,000 Accounts payable 35,000
Accounts receivable 60,000 Short-term notes payable 12,000
Inventories 122,000 Current liabilities 47,000
Current assets 200,000 Long-term notes payable 10,000
Gross fixed assets 40,000 Long-term bonds payable 15,000
Less: Accumulated Depreciation (30,

Answer to Question 2

C